Consumers cut back on retail spending in January as factors like inflation and high credit card debt weighed on Americans, according to a report from the Department of Commerce.
U.S. retail sales were $700.3 billion in January, a decline of 0.8% from December adjusted for seasonal fluctuations, but were up 0.6% from January 2023 without taking price changes into account, according to a report from the Department of Commerce’s Census Bureau. Prices increased 3.1% year-over-year in January due to inflation, placing downward pressure on Americans’ spending power. (RELATED: Inflation Missed Expectations In January. Are We Just Stuck With High Inflation Forever?)
Retail sales in December were $706.2 billion, up by 0.4% from November, not accounting for inflation, according to the Census Bureau. Sales for building materials and garden supplies declined the most in January, down 4.1% in the month, followed by sales at motor vehicle and parts retailers, which declined 1.7% in the same time frame.
